The first tuition bill is due any day now at most colleges and universities. As the market crunch continues to impact the student loan financing market, families are scrambling now more than ever to find the funds to cover the fall semester bill. For example, the Massachusetts Educational Financing Authority (MEFA) recently announced that they will no longer offer loans of any kind - affecting more than 40,000 Massachusetts families.
While families are advised to max out all federal student loan options, more and more students and parents are realizing that federal loans don't cover all college expenses and are now scrambling to find the means to fill the financing gap. Less lender participation this year combined with much tougher credit restrictions for private loans leave families in a challenging position - and make clear that good credit is a MUST when it comes to applying for a loan today.
"Many families are now learning that the federal loans they received won't cover all college expenses. The one piece of advice I give to students and parents is not to panic. Choices are available for families looking for ways to supplement borrowing options," said Kevin Walker, CEO of SimpleTuition, Inc., a company dedicated to helping students and parents make sense of education financing choices.
